WTI (Sep) $63.96 +$1.31, Brent (Oct) $66.84 +$1.21, Diff -$2.88 -10c.

USNG (Sep) $2.84 +1c, UKNG (Sep) 79.38p -1.11p, TTF (Sep) €32.065 -€0.475

Oil price

Oil is at the same level as it started the week ahead of talks tonight in Alaska, few further risks are being taken although money managers have no major long positions in oil at these levels. 

Union Jack Oil

Union Jack has  reported, further to the Company’s announcement of 9 July 2025, that it has been informed by the Operator, Reach Oil and Gas Inc., that the Sark well, located in Central Oklahoma, USA has been spudded. Union Jack currently holds a 60% interest in the Sark well.

David Bramhill, Executive Chairman of Union Jack, commented: 

“Following on the heels of the successful producing Moccasin well, the high-impact Sark well is of major importance to Union Jack, both financially and operationally.

“I look forward to reporting on the results of Sark as soon as information becomes available”.

Yet more from UJO in the USA where the company are continuing to, through its excellent relationship with Reach, who are operator here, drill a sequence of wells in Oklahoma. This one, Sark is an untested Hunton and Wilcox structure with two main and several secondary targets present, adjacent to a producing oilfield.  Closure exists throughout the prospective sequence beneath the 2nd Wilcox and the well will be drilled to the Arbuckle formation.

The well has an estimated recoverable resources of 1,440,000 barrels of oil gross and a cost to drill, complete and develop of circa US$1,100,000 net, including back costs of $236,800. It has an estimated success case of NPV10% circa US$10,900,000 net, based on a US$65/bbl oil price, is adjacent to an oilfield that produced circa 1,600,000 barrels of oil from the Hunton and 2nd Wilcox sands. The Chance of Success of finding movable hydrocarbons in this robust, multiple target structure is 65%, an enviable chance when compared internationally.

Union Jack has successfully started a drilling programme in the USA which gives it a commendable degree of portfolio risk and with increasing revenues from over the pond has clearly been of significant success already. Accordingly the shares are enormously cheap and with decent potential upside from all areas of the portfolio should be seriously considered at these levels.

Zephyr Energy

Readers know that I have followed Zephyr since day one and even before, and am of the view that it is amongst the best run companies around and that the team has a magnificent asset at the Paradox Basin. 

The article I have linked to below is a strong write up of the Paradox project by the US Dept. of Energy national laboratory and if it has any credibility, and it does, should reinforce my bullish view on Zephyr. Shareholders and the market seldom get as many bites of the cherry as they have with Zephyr, dont blame me if you miss this opportunity of a lifetime….

And finally…

The football season starts tonight which as ever is far too early, mind you when it should start is a good question.

Another poor weekend for sport then…